In December, Turkey’s consumer price index rose by 30.89% compared to last year, just under the expected 31%. This indicates that inflation remains a challenge for the country’s economy. This report may affect market feelings and future economic predictions as analysts watch how it impacts Turkey’s monetary policy and economic stability.

Global Financial Updates

Other financial news includes the GBP/USD trading range between 1.3430 and 1.3490, while the EUR/USD has fallen below 1.18. The USD/INR is gaining strength due to geopolitical tensions, while the EUR/GBP has hit a two-month low. In Editor’s Picks, the EUR/USD is weak below 1.1700, and the GBP/USD continues to struggle under 1.3450 amid geopolitical issues. Gold remains steady above $4,400, viewed as a safe investment. Predictions indicate Bitcoin could exceed $93K, with Ethereum and Ripple on the rise. The outlook for advanced economies in 2026-2027 is being tested, while Meme Coins are seeing a rally. For 2026, top broker recommendations highlight Forex brokers with low spreads and preferred choices for trading EUR/USD and CFDs. We also review the pros and cons of major brokers in the Mena region.

US Military Action Impact

US military actions in Venezuela are significantly influencing the market, leading to a flight to safety. This has caused the US Dollar to strengthen, with the Dollar Index (DXY) rising above 108 for the first time since mid-2025. As a result, pairs like EUR/USD are struggling below the 1.1700 mark. Gold’s rapid rise above $4,400 is driven by two main factors: the immediate demand for safe investments amid geopolitical risks and growing expectations for a Federal Reserve rate cut as early as March. A weak December jobs report, showing only 95,000 new payrolls, has reinforced predictions of a more cautious Fed. The slightly lower Turkish inflation provides a potential opportunity. Although 30.89% is still high, it suggests that aggressive rate hikes through 2025 are finally curbing price pressures, a notable improvement from the 65% levels seen in 2024. This could lead to short-term stability for the lira against currencies other than the US Dollar. We’re also noticing a clear divide in digital assets, as Bitcoin’s rise past $93,000 reflects its unique role as a non-state asset during geopolitical conflicts. The market is responding to speculation regarding Venezuela’s shadow reserves, viewing Bitcoin as a safe haven against government confiscation. Bitcoin’s dominance has climbed back above 55% this week, indicating that investments are first moving into this primary asset before reaching more speculative meme coins. Create your live VT Markets account and start trading now.

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